Discretionary spending not increased despite low gas prices

Recent survey report has revealed that the gas prices in the US have slightly gone down in 2013, but this is not leading to a large consumer spending. It was noticed that about 80% of the 1000 people who were surveyed have not increased their discretionary spending in response to the falling gas prices this year.

At the beginning of 2013, it was noticed that the price of gas rose for 34 straight days and then a fall was seen during the months of March and April 2013. However, since then the prices have risen again slightly. That being said, gas is still much cheaper compared to that of 2012.

Media reports claim that a gallon of unleaded gasoline cost $3.65, which is 6 cents lower than the same time in 2012. On the other hand, economists claim that the lower prices are a good sign and many have also said that cheaper gas could even lessen the blow from the higher payroll taxes that went into effect at the beginning of the year.

Studies also mentioned that most Americans have cut on their discretionary expenses due to the higher prices of gas. Greg McBride, a senior financial analyst, said that the budgets are still tight and the households cannot lean against the crutch of credit to support their lifestyles.